Thursday, March 10, 2011

Need Money? Check Your Assumptions

From peers in the nonprofit world do you often hear assumptions about how nonprofits can or cannot earn income? Assumptions that hinder their ability to raise funds and earn money like:

“We could never charge a fee.”

“We can never get corporate money.”

“We can’t raise money from individuals.”

If your nonprofit can use more income (and which nonprofit can not?) it makes sense to re-consider the seven nonprofit income sources at least once yearly. Invest time to determine if conditions have changed. Identify any assumptions that need testing.

To help your review, here are the sources in order of the amount of revenue they provide for nonprofits sector as a whole:

1. Earned or mission income

2. Individual donors from annual appeals to bequests

3. Governments

4. Foundations and other groups

5. Corporations

6. Other income, non-mission related (the room that you rent and soda machine change)

7. In-kind, which is not cash but acts like it when matched to your needs

For more help see the most recent edition of Added Value and other fundraising and income related articles on our website.

1 comment:

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